I was working and living in California; Currently, I am forced to move to GA office (the same employer), however, they allowed me to go fully remote (I do not have even workplace in GA office).
Thus, I want to live in CA but remotely work in the office in GA (from my home office).
Is it legal? if so, how(and when) should I pay taxes?
Currently, My employer is paying my taxes in GA.
Thank you!
If you have Never lived or physically worked in Georgia then you do not have to pay GA state income taxes nor file a GA state income tax return. Tell your employer to stop withholding GA state income taxes from your wages. They should be withholding California state income taxes from your wages.
If your employer is withholding GA taxes then you would need to file a nonresident GA state tax return to get a refund of the taxes paid.
All income from the remote work in GA is taxable in your resident state of California.
should I do it now, or I have time till April,15 (2022)?
THank you!
@Kuchok wrote:
should I do it now, or I have time till April,15 (2022)?
THank you!
If GA taxes are being withheld from your 2021 wages then you would file a 2021 nonresident GA state tax return next year.
If your employer cannot or will not withhold CA taxes, you should begin making quarterly estimated tax payments to CA. Your income is 100% taxable by CA. See this reference:
https://www.ftb.ca.gov/pay/estimated-tax-payments.html
If you will never physically work in GA, you should ask your employer to cease withholding GA taxes ASAP.
I am in a similar situation. I am CA resident and will live in CA 100% of the time while I work for a GA company. Are you saying that on the Georgia Form G-4 I should be claiming exempt, so that GA does not withhold anything? If this is true, is there any reference documentation/link that you can share?
Some other information seems to say that I would pay both GA taxes and CA taxes, but my CA taxes will be credited for the amount withheld by GA.
thanks!
@clayman34 --
W-2 income is "sourced" where the work is actually - physically - performed. Georgia taxes non-residents only on Georgia-source income. If you never physically work within the state of Georgia, your work income is not subject to Georgia income tax. It is, of course, 100% taxable by your home state of California.
If your employer does not withhold CA income tax from your pay, you'll have to make quarterly estimated tax payments to California.